trust return

Darlene-3084 · ‎March 26, 2022

I have a client who passed in Dec 2020 and I filed his final return 2021, in 2021 he received a small amount on T4AP for the 2021 tax season, widow has never asked to return this , do I have to file a T3 return for this?

PlannerChris · ‎March 26, 2022

please refer to:

https://www.canada.ca/en/revenue-agency/services/tax/trust-administrators/t3-return/who-should-file-...

which states:

"You have to file a T3 return if income from the trust property is subject to tax, and in the tax year, the trust:....

receives any income, gain, or profit from the trust property that is allocated to one or more beneficiaries and the trust has:
- total income from all sources of more than $500
- income of more than $100 allocated to any single beneficiary
- distributed capital to one or more beneficiaries
- allocated any portion of the income to a non-resident beneficiary"

jrbooks · ‎March 27, 2022

If the T4A(P) amount is for the death benefit, just put it on the wife's return. Otherwise, you need to figure out just why this money was received. If it was for money owing before the man died, then you might be able to get away with a "rights and things" return. Otherwise, the T3 is probably the safest route to go.

Jo Ruelle